Business
SALE OF MUP PLOT IN BELGRADE FOR EUR 15.9 MILLION
SALE OF MUP PLOT IN BELGRADE FOR EUR 15.9 MILLION.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n \nRNS Number : 5090Y Plaza Centers N.V. 17 May 2016 \n\n17 May 2016\n \nPLAZA CENTERS N.V.\n \nSALE OF MUP PLOT IN BELGRADE FOR EUR 15.9 MILLION\n \nPlaza Centers N.V. (\"Plaza\" or the \"Company\"), a leading emerging markets property developer, announces the sale of its wholly owned subsidiary, which holds the \"MUP\" plot and related real estate in Belgrade, Serbia, for €15.9 million, above the last reported book value of circa €13.5 million. \n \nMUP is a prominent development site at the location of the former Federal Ministry of Internal Affairs, at the entrance to Belgrade's old town and on the city's main thoroughfare. The potential development is projected to comprise a significant mixed-use scheme, including residential units, retail, offices, a hotel and underground parking facilities. As a mixed-use development, the asset sits outside of Plaza's core focus on the retail and leisure sectors.\n \nFollowing the fulfilment of certain technical conditions that are expected to be met in the coming weeks, the purchaser will pay €11 million in cash to the Company. An additional €300,000 will be due before 30 November 2016 and the remaining €4.6 million will be due within 15 months from the transaction closing date. Furthermore, Plaza will also be entitled to an additional pending payment of €600,000, on top of the €15.9 million transaction consideration, once the purchaser successfully develops at least 69,000 sqm above ground.\n \nUpon the receipt of each stage payment, in line with the Company's stated restructuring plan, 75% of the net cash proceeds will be distributed to Plaza's bondholders in the following quarter.\n \nDori Keren Acting CEO at Plaza Centers, said:\n \n\"Following the sale of Riga Plaza, this is another strong result for us as we work intensively towards the disposal of certain non-core or mature assets in our portfolio. The MUP site has significant potential to become a major destination in Belgrade, but as a mixed-use development it sits outside of our core focus on shopping and entertainment centres. As such, it is pleasing to have secured the sale at a price significantly above book value, following the asset management success we have achieved in the planning and permits process over the last few years. The disposal will enable us to...